A Small Business Produces a Single Product and Reports the Following

question 14

Multiple Choice

A small business produces a single product and reports the following data: The company believes that the volume will go up to 11,000 units if the company reduces its price to $7.50.How would this change affect operating income?

• A)It will go up by $2,500.
• B)It will go up by $9,000.
• C)It will go down by $2,500.
• D)It will go down by $9,000.

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Definitions:

Capillary Action

The ability of a liquid to flow in narrow spaces without the assistance of or even against external forces like gravity.

Hydrogen Bond

A weak attractive force existing between a hydrogen atom with a partial positive charge and an electronegative atom (usually oxygen or nitrogen) with a partial negative charge. Compare with covalent bond and ionic bond.

Van der Waals Interaction

A type of weak interaction between molecules due to transient electric dipole moments, influencing molecular structure and function.

Ionic Bond

A type of chemical bond formed through the electrical force between oppositely charged ions.